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Wikileaks loses briefly-open Icelandic payment channel

Back to Bitcoin, banks and brown envelopes for Assange™

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So WikiLeaks and Julian Assange have been frustrated again: on the money front that is. They're back to cash, Bitcoin and bank transfers as a method of receiving donations.

There had been a hope last week that DataCell would be able to start processing donations, for it had made an agreement with the Icelandic bank Valitor to have Visa and Mastercard payments processed by the bank.

The problem for WikiLeaks, as you will know, is that the two credit card processing conglomerates have refused to handle donations being sent to the whistle-blowing site ever since the site published those US State Department documents last December. Might sound unfair, might even be unfair, but pissing off the big boys always does have consequences and no US-based company dependent upon a banking licence or even US government goodwill is going to take the risk of handling money for the people who did that.

DataCell says that it had always been open about the fact that it was going to process payments for WikiLeaks when it made its deal with Valitor. Valitor denies this. Spokeswoman Jonina Ingvadottir told Reuters in an emailed statement on Friday that:

"Valitor was not informed that DataCell would be conducting these activities when their business agreement was made."

She cited Visa and MasterCard's prohibition on the "service such as DataCell is offering WikiLeaks".

Some 100 or so payments made it through the system before this financial lifeline was again cut.

As WikiLeaks itself says, there doesn't seem to be any legislative reason why the two credit card companies can't or won't process donations to them, nor why PayPal can't. But that they won't is certainly a problem: WikiLeaks' own estimation is that the bans have cost it $15m in reduced donations.

It's certainly possible to get irate about the financial strangulation: but DataCell themselves do seem to have been a bit cheeky here, knowing full well that when it became known that WikiLeaks' donations were being processed through the Visa system that that processing would stop. Or at least they should have known full well.

Perhaps this is more political theatre rather than a really determined attempt to open up the funding route again. ®

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"Private" companies

They're private only in the sense that they are controlled by a small number of people. They are public utilities in every other sense. As such, they should be compelled to provide the service on which the public depend.

To pretend that Visa/Mastercard are not as important to modern Western life as water and electricity is untenable. Turning off their services on a whim is no different from an electricity company turning off the power to a factory because they don't like the owner.

If, as "private" companies they are not able to live up to the responsibilities they have, in fact, purposely taken onto themselves then they should no longer be allowed to continue as private companies.

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At the same time

They don't seem to be able (or care about) fake AV and bogus pills using their payment system to rip off people.

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@Lee Dowling

You're missing the fact that Visa and Mastercard *don't* just provide _credit_ cards - they also provide Debit cards, and pre-pay cards. With the latter two essentially they're telling you you can't spend your money, *which they're holding for you* with whoever you like.

+1 for used notes.

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